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Merger of Yukos, rival firm canceled

December 18, 2003|By Items compiled from Tribune news services.

MOSCOW, RUSSIA — A proposal to create the world's fourth-largest oil producer by merging Russia's beleaguered Yukos with rival Sibneft officially was called off Wednesday, a casualty of the jailing of former Yukos head Mikhail Khodorkovsky.

Three weeks ago, Sibneft had said that the merger was on hold, but Wednesday's announcement sent Yukos shares plunging an additional 4 percent--down more than 40 percent from their peak before Khodorkovsky's arrest in October.